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- Not Your Keys Not your Crypto
Greetings CryptoCubers!
We hope your Uptober is going well!
Prices:
- BTC: $62,813
- ETH: $2,463
- SOL: $146
This week, we’re diving into a crucial topic in crypto: self-custody and the popular saying, “Not your keys, not your crypto!”
What Does "Not Your Keys, Not Your Crypto" Mean?
If you’ve been around the crypto space for a while, you’ve likely heard this phrase. But what does it mean? Essentially, it highlights the importance of ownership and control over your crypto assets.
When you buy crypto on an exchange or use a third-party service, you often store your coins in a wallet controlled by the exchange or platform. The problem? You don’t actually own the private keys to that wallet—the platform does. In simple terms, while you can see your coins in your account, you’re trusting the exchange to keep them safe. If something goes wrong (like a hack or a freeze on withdrawals), you could lose access to your funds.
What Are Private Keys?
A private key is like a secret password that allows you to access and control your cryptocurrency. It’s unique to your wallet and needs to be kept safe. Think of it like the PIN to your bank account. If someone else gets access to it, they can control your funds.
Why Is Self-Custody Important?
Self-custody means you are in full control of your crypto. By moving your assets to a wallet where you hold the private keys, you take on the responsibility of security but also gain complete control over your funds. No third parties, no intermediaries. Just you and your crypto.
There are a few ways to store your private keys securely:
- Hardware Wallets: Devices like Ledger or Trezor that keep your private keys offline, making them less vulnerable to hacks.
- Software Wallets: Applications you download to your phone or computer where you can manage your keys.
Takeaway: Protect Your Keys, Protect Your Crypto
At the end of the day, self-custody ensures that you have true ownership over your assets. If the saying “Not your keys, not your crypto” tells us anything, it’s that security and control should always be a priority.
Happy Uptober !
Blessings